Fisker bankruptcy hearing underway in Delaware

A Chinese company trying to buy Fisker Automotive said it will use Delaware’s Boxwood plant if it obtains the company.

Wanxiang America Corporation also upped it’s bid for Fisker by $10 million dollars.  

In court documents filed Thursday, Wanxiang said it would produce Fisker’s Gen II vehicles in Delaware.

“Wanxiang America intends to pursue the design and development of the Gen II line of vehicles and, once such vehicles are ready for mass production in volumes that necessitate a separate manufacturing facility, intends to manufacture such vehicles at the Debtors’ existing facility at 801 Boxwood Road in Wilmington, Delaware.”

Creditors, or people owed money by bankrupt Fisker are pushing for a Wanxiang bid. However, Fisker has been hammering out a deal with another company Hybrid Technologies, owned by Chinese billionaire Richard Li.

A judge could decide today whether to approve the plan with Hybrid or allow Wanxiang to throw in a bid.

Meanwhile, Delaware officials submitted letters to the court supporting Wanxiang’s proposal.

“The sole purpose of the state’s loan and grant was to provide a future for a sector of the Delaware economy hard hit by the recession, so we strongly support any path forward that could lead to that result,” said Gov. Jack Markell in a statement. “

Additionally, U.S. Senator Tom Carper and Representative John Carney released a joint statement also in support.

“We believe an open process might attract a bidder who is interested in carrying out Fisker’s original vision, including the manufacturing of a new vehicle model produced in high volume. It is the production of such a vehicle that would require the capacity provided by the Delaware plant.  Production of the vehicles at the Delaware plant would meet the original goal for creating new, highly skilled, high-paying manufacturing jobs in the United States and in Delaware.  We will do what we can to help that promise become reality.”